German KfW bank reports climate risks for first time
Clean Energy Wire
German state-owned KfW Development Bank has for the first time reported on possible risks its operations may face due to the global climate crisis. In the now-published first section of its 2019 sustainability report, the bank has so far only looked at the oil and gas sector, although it represents only one percent of the bank’s net exposure. In this area and under a 2°-scenario, “a significant concentration of climate risks is not to be expected,” KfW said. “Even though all our attention is currently focused on the coronavirus, the risks of climate change continue to threaten the stability of our economic and financial systems, and we should not lose sight of that,” CEO Günther Bräunig added.
KfW decided to stop financing all coal-related business activities in 2019, but environmental NGOs complained that it could still finance certain types of oil and gas production. The climate risk reporting it has now carried out is in accordance with the recommendations of the industry-led Task Force on Climate-related Financial Disclosures (TCFD).
